Newcastle council has voted to place on public exhibition a review of the city's business improvement associations which proposes significant changes to the way they are funded.
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The review by consultants AECOM recommends the BIAs receive no more than $100,000 in automatic funding from special levies on commercial ratepayers in five Newcastle suburbs.
Levy funds raised in a precinct beyond $100,000, which in Newcastle Now's case will equate to about $872,000 in 2019-20, would be thrown open to competition between the BIAs and other groups for beautification or promotional programs.
The Hamilton ($136,000) and Wallsend ($146,000) BIA areas also raise more than $100,000. All money raised in Mayfield ($76,000) and New Lambton ($15,000) would be open to applications.
Contestable funds would be added to the council's existing economic development and event sponsorship programs for allocation.
City of Newcastle chief executive officer Jeremy Bath said the contestable funds would total about $800,000 after the $300,000 for Newcastle Now, Hamilton and Wallsend BIAs and centralised administration and director training costs had been deducted from the $1.346 million the council expects to collect.
The council will hold a public voice session on the BIA review after the public exhibition period.
The heads of the Newcastle, Hamilton, New Lambton and Mayfield BIAs have written to the Office of Local Government asking for an investigation into the council's handling of the levy.
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